Accounting Industry Update Report
AccountingIndustry Update Report
Theaccounting sector has undergone major transformation in recent years.This includes strict government regulation due to the rise in fraud,and the introduction of information technology mechanisms in thefield. The accounting industry comprises of six major industries thatinclude government, education, audit, corporate, non- profitorganizations, and public. All these industries have specializationsbased on the industry’s role and needs. Traditionally, earning acertified public accountant certification was considered the highestlevel of accounting certification. However, modern accounting is alsooffered in degree and other higher levels of education. Thus, theaccounting field has evolved and continues to evolve. The best fieldto practice accounting is the public.
The public accounting firm consists of accounting companies thatprovide accounting services for different fields and clients. Thecompanies offer specialized accounting services to different firmsand clients. Some of the services include consultancy, audit,forensic, tax, advisory, and business valuation. This gives anaccounting practitioner a wide field of practice. This fieldcomprises of such firms as KPMG , PWC and Deloitte. The companiesoffer their services independently and they employ specialists indifferent fields who perform different tasks. This means that a freshgraduate has many people to guide her and this provides a goodopportunity for informed specialization (Gaylord& Glenda 96).
Currently,the industry of public accounting has faced many changes due to thediverse nature of the field. The industry keeps receiving newentrants into the business, who provide different or specializedskills. This has led to tighter government regulation for joining thefield as some firms have been known to provide poor services toclients (Rapoport 1). Additionally, some people have been known tooffer services without the necessary qualifications. These peoplefacilitate firms and organizations to commit economic crimes, whichaffect the state of the economy (Leuz,Dieter & Anthony 28).
Therehas also been regulation that requires firms to comply with a numberof rules that have been provided by industry regulators such as theIRS and American Institute of Certified Public accountants. Theseregulators keep amending the regulations, which are meant tostreamline the industry and offer quality services to the public.This has, however, made it difficult for small firms to survive asthey require a lot of financing (Rapoport 1). These regulations keepbeing updated based on the industry’s changes and market forces.Financial crimes and fraud are some of the biggest challenges thatface the economy that are facing the economy and they are facilitatedby unscrupulous practitioners (Hanover1).For this reason, the regulations keep getting tighter so as to deterfinancial crimes.
Thepublic accounting industry is currently dominated by the big firmsthat have reputable associates and experience. These firms canattract competent employees with unmatched skills in accounting.These firma are also able to offer a variety of skills and this iswhat keeps them going. However, the current trend is the rise ofsmall firms that are run by skilled people in accounting. A personwith accounting skills such as a degree can perform accounting workwith utmost accuracy. Additionally, the big firms charge very highfees for their services. These fees are prohibitive to smallcompanies and organizations that also need accounting skills. Thus,the small public accounting firms offer their services to suchorganizations. This means that there are more opportunities forgraduates due to the rise of small firms (Rapoport 1).
Therise of the social media has also affected the public accountingindustry. This is because the forum offers a platform for people tomarket their skills as well as interact with clients. Thus, even thebig firms have been forced to open and closely manage their socialmedia accounts, for purposes of maintaining a good image withclients. It also offers a platform for gathering information aboutwhat clients are looking for in accounting. Thus, the social mediaplatform has become very helpful as a tool for marketing and offeringinformation. This provides a chance for accountant with informationtechnology, and marketing skills in different firms (Gaylord& Glenda 56).The accountant is required to interact with clients and offerintelligent information through social media while also maintaining agood image.
Thereis also the rising trend of outsourcing. This means that a companyemploys the skills of a specialist for a certain period of time. Thisis because it reduces overheads and accesses the skills of experts.This trend has gained ground in the past six months as firmsespecially small firms seek to utilize highly skilled personnel forspecific tasks (Leuz,Dieter & Anthony 88).This means that accounting students who specialize in their field canoffer outsourcing skills to different firms and this improves theircareer and expertise. This is because the person will have manychallenges attached to her skills in accounting and thus, become avaluable skill in accounting.
Theobamacare has also given rise to numerous opportunities foraccountants. This is especially after the release of a report thatshowed that the care would result in high economic consequences inthe long run. The bill is quite complex and firms will require theskills of accountants now and in future so as to understand it andimplement it well (Rapoport 1). This has changed the way people valueaccountant as people are looking for accounting skills to breakdownthe bill. This offers chances for accounting students to becomeconsultants especially for organizations that cannot afford theservices of the big public accounting firms.
Theeconomic meltdown also saw the rise in the need for accountingskills. This is because people want to know how trends in the economywill affect the economy in future. This requires accounting skills incalculating the current position of the economy and linking this tofuture activities. Thus, people are interested in knowing how markettrends will look like in future. These services are offered by publicaccounting firms and they provide an opportunity for accountingstudents especially those who can offer the services through suchplatforms as social media (Salisbury 1). Accounting firms realizethat the rise of the social media provides avenues for offeringinformation, leading to more clients.
Therise of the internet has also given rise to new opportunities foraccounting firms. The last six months has witnessed a change in howfirms offer services to international firms. This includes theallowance to travel or to offer the service through telecommunicationchannels. This means that the firms now have bigger opportunities forthan before. The accounting firms can now have international clients(Hanover1).This provides many opportunities for accounting students in differentfields within the public accounting firms.
Inconclusion, the accounting field has grown remarkably over the years.The public accounting industry continues to experience growth as morepeople seek professional accounting services. The public accountingindustry performs different activities in the accounting field.Current trends indicate that the industry will continue to grow dueto increasing opportunities for accountants. There is the rise ofsmall firms, which have provided many opportunities especially forfresh graduates. The trend points towards the need to diversify howthe firms avail information to the general public.
Foundationsand Trends in Accounting.Hanover, Mass: Now Publishers, 2006. Internet resource.
Gaylord,Gloria L, and Glenda E. Ried. Careersin Accounting.New York: McGraw-Hill, 2006. Print.
Leuz,Christian, Dieter Pfaff, and Anthony G. Hopwood. TheEconomics and Politics of Accounting: International Perspectives onResearch, Trends, Policy, and Practice.Oxford: Oxford University Press, 2004. Print.
Rapoport,Michael. “New Accounting Rules Proposed for Small Businesses.”TheWall Street Journal. Washington:The Wall Street Journal, 10/06/2013. Web.
Salisbury,Dallas, L. “Benefit Trends: Change is now Constant.” WallStreet Journal. Washington:The Wall Street Journal, 2008. Web.